Small multi-family (2-4 units) buy & hold investment in Orem.
Purchase price: $311,000
Cash invested: $15,000
2000 soft. 6bed/2bath
Traditional House Hack with a young married couple renting out the basement for $1000.
Our Mortgage (including PMI) is $1900.
We live in a 3bed/1bath place for $900 - average market rents for such a place are $1300-1400.
What made you interested in investing in this type of deal?
To start our investing business and to save money every month on rent!
Gain equity, and grow our net worth!
How did you find this deal and how did you negotiate it?
How did you finance this deal?
What was the outcome?
Its been a great place to start my young family. We had our 1st child 3 weeks after moving into the property!
Lessons learned? Challenges?
I would have done more due diligence on the renters we inherited from the previous home owner.
When we bought the home both units were being rented out, and the seller asked us to leave the current tenants for the remainder of their leases.
Our upstairs tenants (who have a couple months left on their lease) never paid rent on time and still haven't paid their last months rent, AND left the place a mess for when we moved in!
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
We had an amazing agent - Kim Truesdel! Highly Recommend. She also works for H&R Block as an EA, so she keeps your tax situation in mind when helping you invest.
We also would highly recommend our lender - Kody Bradford! He was the man. We had a few different hiccups, including the home not appraising up to our offer, he handled ever challenge like a champ and got it done!
Congratulations @Michael Becker it sounds like you and your family are making moves in the right direction. Are you planning on living there for a year and then finding another small multifamily and doing an FHA loan house hack again?
Hey Michael, yes that is the plan. We have a conventional loan right now, so we plan on using FHA next. Our hurdle right now is savings up again for a down payment.
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